Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill And Other Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350, “Intangibles – Goodwill and Other”.

The following table represents the change in the carrying value of goodwill for the six months ended June 30, 2022 (amounts in thousands):


Balance as of December 31, 2021	$	860,362
Measurement period adjustment - BioFlex		(376	)
Measurement period adjustment - Avitide		(1,784	)
Cumulative translation adjustment		(3,874	)
Balance as of June 30, 2022	$	854,328

During each of the fourth quarters of 2021, 2020 and 2019, the Company completed its annual impairment assessments and concluded that goodwill was not impaired in any of those years. The Company has not identified any “triggering” events which indicate an impairment of goodwill in the three and six months ended June 30, 2022.

Intangible Assets

Intangible assets with a definitive life are amortized over their useful lives using the straight-line method, and the amortization expense is recorded within cost of product revenue and selling, general and administrative expenses in the Company’s statements of comprehensive income. Intangible assets and their related useful lives are reviewed at least annually to determine if any adverse conditions existed that would indicate the carrying value of these assets may not be recoverable. More frequent impairment assessments are conducted if certain conditions exist, including a change in the competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for the Company's products or changes in the size of the market for the Company’s products. An impairment results if the carrying value of the asset exceeds the estimated fair value of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its intangible assets are recoverable at June 30, 2022.

Indefinite-lived intangible assets are reviewed for impairment at least annually. There has been no impairment of the Company’s intangible assets for the periods presented.

Intangible assets, net consisted of the following at June 30, 2022:


	June 30, 2022
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
	(Amounts in thousands)
Finite-lived intangible assets:
Technology - developed	$	145,304	$	(25,862	)	$	119,442		17
Patents		240		(240	)		—		8
Customer relationships		253,221		(58,709	)		194,512		15
Trademarks		7,675		(1,096	)		6,579		19
Other intangibles		2,801		(1,826	)		975		4
Total finite-lived intangible assets		409,241		(87,733	)		321,508		16
Indefinite-lived intangible asset:
Trademarks		700		—			700		—
Total intangible assets	$	409,941	$	(87,733	)	$	322,208

Intangible assets consisted of the following at December 31, 2021:


	December 31, 2021
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
	(Amounts in thousands)
Finite-lived intangible assets:
Technology - developed	$	146,097	$	(21,553	)	$	124,544		17
Patents		240		(240	)		—		8
Customer relationships		254,699		(50,719	)		203,980		15
Trademarks		7,699		(877	)		6,822		19
Other intangibles		2,839		(1,611	)		1,228		4
Total finite-lived intangible assets		411,574		(75,000	)		336,574		16
Indefinite-lived intangible asset:
Trademarks		700		—			700		—
Total intangible assets	$	412,274	$	(75,000	)	$	337,274

Amortization expense for finite-lived intangible assets was $6.6 million and $5.2 million for each of the three months ended June 30, 2022 and 2021, respectively, and $13.2 million and $10.4 million for each of the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, the Company expects to record the following amortization expense in future periods (amounts in thousands):


	Estimated
	Amortization
For the Years Ended December 31,	Expense
2022 (remaining six months)	$	13,182
2023		26,246
2024		25,661
2025		25,322
2026		25,322
2027 and thereafter		205,775
Total	$	321,508